https://www.taxtmi.com/caselaws?id=50152 Clandestine manufacture and removal cannot be established merely from note-book entries recovered from a person whose connection with the assessee is disputed. Denial of cross-examination of that person breaches principles of natural justice where the entries form the basis of the demand. Retracted statements require reasons for reliance and corroborative evidence; suspicion alone cannot substitute proof of clandestine activity. The demand, interest and penalty were set aside because the evidence did not legally establish unaccounted manufacture or removal, with consequential relief granted. en-us Mon, 11 Dec 2000 00:00:00 +0530 Mon, 05 Jan 2026 14:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=50152 Clandestine manufacture and removal cannot be established merely from note-book entries recovered from a person whose connection with the assessee is disputed. Denial of cross-examination of that person breaches principles of natural justice where the entries form the basis of the demand. Retracted statements require reasons for reliance and corroborative evidence; suspicion alone cannot substitute proof of clandestine activity. The demand, interest and penalty were set aside because the evidence did not legally establish unaccounted manufacture or removal, with consequential relief granted. Case-Laws Central Excise Mon, 11 Dec 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=50152